QUIZ 1

1. What is economics? (5 points)

2. Enumerate and define the following:
a. 5 divisions of economics.
b. 5 economics resources
 MEANING OF DEMAND & SUPPLY
Demand – means the desire for a
particular good backed up by
sufficient purchasing power. The
term demand signifies the ability or
willingness to buy a particular
commodity at a given point in time.

a. Effective Demand – consumer and willing and

able to purchase.
b. Potential Demand – consumer and willing to
purchase
MEANING OF SUPPLY AND DEMAND
Supply – quantity of a
commodity that is in the
market available for
purchase at particular
price. It is the amount
goods and services
available for sale at given
prices at a given period of
time.

It implies the ability and willingness of the seller to sell

 DEMAND & SUPPLY SCHEDULE
Market – is a place where
buyers and sellers interact with
each other and that exchange
takes place among them.

In the market, there are different buyers and sellers who will
buy or sell different quantities of a commodity
 DEMAND & SUPPLY SCHEDULE
a. Demand Schedule – reflect the quantity of goods
and services demanded by a consumer or an aggregate
of consumers at any given price.

Hypothetical Demand of beef in the market

Prices of beef (per kilo) QD in kilos
P 300 20
250 40
200 60
150 80
100 100
50 120
 DEMAND & SUPPLY SCHEDULE
b. Supply Schedule – shows the different quantities
that are offered for sale at various prices. The supply
schedule may reflect the individual schedule of only one
producer or the market schedule showing the aggregate
supply of sellers or producers
Hypothetical Supply of Rice in the market
Prices of beef (per kilo) QD in kilos
P 600 300
500 250
400 200
300 150
200 100
100 50
 THE LAW OF DEMAND
May be stated as “the quantity of a commodity which buyer
will buy at a given time and place will vary inversely with the
price. This means that as price increases, quantity demand
decreases, and as the price decreases, quantity demanded
increase other things are constant.
THE LAW OF DEMAND
THE LAW OF DEMAND
 RESEARCH THE FOLLOWING TOPICS

1. Demand and Supply Curve

2. Determinants of Demand
3. Determinants of Supply